Abuja — Minister of State for Petroleum Resources, Chief Timipre Sylva, Tuesday, stated that Nigeria has favourable conditions to bring electricity to its citizens at modest costs, compared to many other nations in the world.
Speaking in Abuja, at the on-going Society of Petroleum Engineers’, SPE, Nigeria Energy Industry Transformation Summit, NEITS, maintained that the growth of the Nigerian economy is hinged on constant power supply.
To this end, he revealed that the Federal Government was currently working with critical stakeholders in the oil and gas industry to convert the massive amount of gas being flared in the country to electricity for Nigerians at a cheaper rate.
He, however, stated that the development of an optimal framework for electricity generation based on natural gas, would create a strong basis for providing electricity to all Nigerians.
He said: “Therefore, a significant network of additional gas pipelines is a priority. The flag-off of the construction of the AKK pipeline is the first important step in this direction.
“Based on increased gas production, stable and predictable gas pricing framework, Nigeria will be able to attract further investment in this sector of our industry. Industry must be aware of Government’s effort at stabilizing gas pricing with the inauguration a few weeks ago, of a gas pricing committee, currently at work.
“The proposed PIB will also provide a wide variety of features to ensure that natural gas makes the optimal contribution to sustainable industry and national development in the medium to long term.”
Furthermore, with the National Gas Expansion Programme, NGEP, Sylva said existing policies, legal and regulatory frameworks and commercial instruments that hindered the development of the local gas sector are being reviewed.
The minister added that the cardinal objective of the Federal Government as regards gas utilization was reforming and implementing the promotion of a market structure in a manner that would ensure the utilisation of gas infrastructure, assets and facilities on a common carrier and co-sharing basis.
“Strategies that will promote cost effective distribution of the various gas streams by marine, rail and road for achieving a most affordable, available, acceptable and accessible gas to Nigerians are being formulated.
Substituting traditional white products with gas will cushion the effects of deregulation, foster human capital development through new investments and create enormous job opportunities for Nigerians,” he noted.
Sylva further stated that the COVID-19 pandemic had triggered unprecedented dynamism in the world’s energy landscape, adding that Nigeria’s current transition from oil dependence to cleaner energy in gas offers a sustainable pathway to industry and national development.
He added that the Petroleum Industry Bill would provide a framework for sustained and increased petroleum industry activities in terms of developing gas for domestic market and increasing oil production under competitive terms to support the goal of a stronger non-oil economy for the benefit of all Nigerians.